How should researchers monitor the various forms of inequality in sub-Saharan Africa? What steps should policymakers take to reduce this inequality? This paper from the Inter-Regional Inequality Facility surveys empirical studies of poverty in an attempt to establish the levels, consequences, current trends and determinants of inequality in the region. It argues that educational reforms, infrastructure development and demographic change can reduce income inequality, and that promoting equality and economic growth can together lower poverty levels.
Until recently, observers regarded income inequality in sub-Saharan Africa as comparatively low and as no great obstacle to poverty reduction. But subsequent research has shown that inequality here – when measured by differences in income and other socio-economic entitlements – is among the highest in the world. While researchers have recently focused on income inequality, studies of non-income factors have been neglected, especially by African institutions.
Both the Millennium Development Goals and Poverty Reduction Strategy Papers have highlighted the significance of gender, racial and geographical inequalities in exacerbating poverty. The experiences of several sub-Saharan countries also suggest that economic growth alone is not sufficient to reduce poverty.
While results vary across the region, various broad patterns emerge from studies on sub-Saharan inequality:
- Although levels of asset and capability inequality are higher in rural areas, there is greater income inequality in cities. The gender gap in education access, health standards and labour entitlements generally disadvantages women. In South Africa and Namibia, racial inequalities are an obstacle to black and indigenous communities’ access to education and the labour market.
- In the absence of historical tracking data, there is little consensus on current trends in African income inequality. Some countries, like Ghana, saw improvements in wealth distribution, while others, like Tanzania, witnessed growing inequality. Figures for non-income inequalities between genders and geographical areas also indicate variations across the region.
- High inequality might result in poorer growth, possibly through its link to bad governance. For countries with high levels of inequality, increased economic growth alone might have a weaker impact on poverty reduction. Keeping inequality down at its current levels could reduce the growth required to meet the Millennium Development Goals.
- Individual political economies determine the relation between inequality, growth and poverty. Post-conflict countries and those dependent on extractive industries may see a correlation between increased inequality and growth. Low population density, a high trade-GDP ratio and ethnic diversity may drive socio-economic disparities. Access to credit, anti-discrimination legislation and subsidies in health and education may promote equality.
The focus and dissemination of research on inequality need to be improved:
- Researchers should undertake country case studies and cross-country comparisons to develop more comprehensive inequality data, analyse inequality determinants and formulate policy to meet the Millennium Development Goals.
- Regional institutes, especially in West and Central Africa, need to make their research more accessible and to build bridges between anglophone and francophone researchers.
- There should be development of African researchers’ capacity to analyse non-income inequality to convince economists and decision-makers of the importance of these policy areas.
- Multidisciplinary groups and statistical agencies should be supported to produce reliable measurements of non-income inequality.
